Tax Help

Tax Help

If you go to file your taxes and realize you have had a much bigger year than you had expected and you owe more on taxes than is possible to come up with there are several options available to you by not only the federal government but also several lawyers and tax debt help facilities.

Here are a few things that might happen in which you could end up having a large tax debt.

Business and accounting trouble, changes in your w-4 at work, big life changes such as children moving out, going to college, dropping out of school, moving, job changes, etc.

The best thing you can do to get help when you are going through a life change that might effect your taxes is to contact your local professional tax office, either HR Block, Jackson Hewitt or your personal CPA and ask them what you can do to make the change have the least effect on your taxes. All licensed professionals should be able to help you make the best decisions for your taxes and therefore decrease any major problems that could come up down the road when you need to file taxes for that year.

If however you do find yourself in a lot of trouble and very far behind on your taxes there are several lawyers that will negotiate on your behalf with the IRS to lower what you have to pay. Before you hire a lawyer of this kind you should do your research very carefully. Check in the phone book for names of lawyers in your area, then you should contact the Better Business Bureau to make sure the lawyer you have chosen is legitimate.

You can also contact local tax professionals to see what they can negotiate on your behalf, because it might end up being cheaper than hiring a lawyer.

Many people fear the IRS because it is part of the federal government, however if you are upfront with them about your taxes and honestly make an effort to work with them on your situation they are usually very accomodating, though lawyers do make the process easier for large debts because they have the ability to negotiate settlements.

Either way you should immediately respond to any correspondence with the IRS to stay on top of your situation and show you are working with them towards a resolution.

HOW TO AVOID COMMON ERRORS?

The Internal Revenue Service recommends reviewing your entire tax return to be sure it is accurate and complete. Even a simple mistake can cause problems which might lead to delays in processing your return and receiving your refund.

Here are some ways to avoid common tax return errors:

* File electronically. If you choose to e-file, many common errors are avoided or corrected by the computer software. If your income is under $54,000 you may be able to e-file for free using IRS Free File.
* Use the peel-off label if you choose to mail a paper return. You may line through and make necessary corrections right on the label. Be sure to fill in your Social Security number in the box provided on the return. If you do not have a peel-off label, fill in all requested information clearly, including the Social Security numbers.
* Check only one filing status on the tax return and check the appropriate exemption boxes. Enter the correct Social Security numbers for each of those exemptions.
* Use the correct Tax Table column for your filing status.
* Double check all figures on the return. Math errors are common mistakes.
* Make sure that the financial institution routing and account numbers you have entered on the return for a direct deposit of your refund are accurate. Incorrect numbers can cause the refund to be delayed or misdirected.
* Sign and date the return. If filing a joint return, both spouses must sign and date the return.
* Attach all Forms W-2, Wage and Tax Statement, and other forms that reflect tax withheld to the front of the return. Attach all other necessary forms and schedules.
* Do you owe tax? If so, enclose a check or money order made payable to the "United States Treasury" and Form 1040-V, Payment Voucher, if used. Or, you may choose to pay by credit card by contacting one of the credit card service providers.

NEXT IRS TIP- HOW TO AVOID TAX TIME PROBLEMS?

If you are looking for ways to avoid the last-minute rush for doing your taxes- here are some stress-relieving ideas to help you.

Don't Procrastinate Resist the temptation to put off your taxes until the very last minute. Your haste to meet the filing deadline may cause you to overlook potential sources of tax savings and will likely increase your risk of making an error.

Visit the IRS Online In fiscal year 2007, there were more than 214 million visits to IRS.gov and 1.35 billion page views. Anyone with Internet access can find tax law information and answers to frequently asked tax questions.

File Your Return Electronically Nearly 80 million taxpayers filed their returns electronically in fiscal year 2007. Aside from ease of filing, IRS e-file is the fastest and most accurate way to file a tax return. If you're due a refund, the waiting time for e-filers is half that of paper filers.

Don't Panic if You Can't Pay If you can't immediately pay the taxes you owe, consider some stress-reducing alternatives. You can apply for an IRS installment agreement, using our new Web-based Online Payment Agreement application on IRS.gov. The Web-based application allows eligible taxpayers or their authorized representatives to self-qualify, apply for, and receive immediate notification of approval. You also have various options for charging your balance on a credit or debit card. There is no IRS fee for credit or debit card payments, but the processing companies charge a convenience fee. Electronic filers with a balance due can also file early and pay their taxes directly from their checking or savings account on the April due date with no service fee.

Request an Extension of Time to File - But Pay on Time If the clock runs out, you can get an automatic six month extension of time to file to October 15. However, this extension of time to file does not give you more time to pay any taxes due. You will owe interest on any amount not paid by the April deadline, plus a late payment penalty if you have not paid at least 90 percent of your total tax by that date. See IRS Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return for a variety of easy ways to apply for an extension. Form 4868 is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676). Taxpayers needing Form 4868 should act soon to be sure they have the item in time to meet the April deadline.

HOW TO AVOID TAX SCAMS?

Don't fall victim to tax scams. These schemes take several shapes, ranging from promises of large tax refunds to illegal ways of "untaxing" yourself.

The IRS suggests that you remember three important guidelines:

* You are responsible and liable for the content of your tax return.
* Anyone who promises you a bigger refund without knowing your tax situation could be misleading you, and
* Never sign a tax return without looking it over to make sure it is accurate.

Beware of these common schemes:

Return Preparer Fraud:
Dishonest tax return preparers can cause many headaches for taxpayers who fall victim to their ploys. Such preparers derive financial gain by skimming a portion of their clients' refunds and charging inflated fees for return preparation services. They attract new clients by promising large refunds. Choose carefully when hiring a tax preparer. As the saying goes, if it sounds too good to be true, it probably is. No matter who prepares your tax return you are ultimately responsible for its accuracy and for any tax bill that may arise due to a questionable claim.

Identity Theft:
It pays to be choosy when it comes to disclosing personal information. Identity thieves have used stolen personal data to access financial accounts, run up charges on credit cards and apply for new loans. The IRS is aware of several identity theft scams involving taxes or scammers posing as the IRS itself. The IRS does not use e-mail to contact taxpayers about issues related to their accounts. If you have any doubt whether a contact from the IRS is authentic call 800-829-1040 to confirm it.

Frivolous Arguments:
Promoters have been known to make outlandish claims that the Sixteenth Amendment concerning congressional power to establish and collect income taxes was never ratified; that wages are not income; that filing a return and paying taxes are merely voluntary; and that being required to file Form 1040 violates the Fifth Amendment right against self-incrimination or the Fourth Amendment right to privacy. Don't believe these or other similar claims. Such arguments are false and have been thrown out of court. Taxpayers have the right to contest their tax liabilities in court, but no one has the right to disobey the law.

Professional tax debt help will be needed by anyone that finds themselves facing a large amount of debt in past returns to the IRS. This can happen for many reasons, but whenever it does, there are certain things that you need to take into consideration. One of those is to make your move. You should not avoid taxes as they will not go away. Instead, strive to find the best solution for your debt situation by getting the right type of tax debt help. Here are some tips to help you to do so.

First off, if you owe the IRS under $10,000, then you can make arrangements with the IRS directly to get the debt under control. In this case, you can make out a plan of action and they will work with you to get your repayment underway. If you go about doing this yourself, without any tax debt help from a professional, be sure to have your original tax returns checked for any overlooked deductions or any changes that can be made to lower the amount that you owe.

On the other hand, if you owe more than $10,000, you must take into consideration hiring a tax professional to help you. Tax debt help at this level is very highly recommended because the high cost of this debt can be overwhelming. Indeed, there are many situations where people simply can not make ends meet over their debts.

When hiring a tax professional at this level, they will help you by starting at the beginning with your original tax returns. Often, amendments can be made to previous tax returns if errors are found. If there is any way to save you some of the money that you owe, the professional will find it for you. When hiring tax professional help, be sure that they are qualified to handle this type of amnesty program. Tax debt help like this is readily available.

No matter if you get the tax debt help from a professional or not, the key is to find a way to set up repayment. Amnesty programs are in place to help individuals to find the right amount payment that meets their financial needs. You will want to find a solution that works for your financial situation individually. Do not avoid these tax problems but rather work towards finding the solution that helps you to repay what you owe. It is strongly recommended, though, that you consider professional tax debt help. You may find that this can save you money in the long and short term and it can help you to finally be on the right track.

Free volunteer tax return preparation help.

Q:Are you puzzled by the tax law and which credits and deductions you can take? If so, then why not look into the free, sponsored by IRS, volunteer tax return preparation services?

Many low-income individuals receiving Social Security, Railroad Retirement, some veterans benefits, or a small amount of earned income who usually do not file a tax return may want to utilize IRS free services this year. Individuals who might not otherwise be required to file a 2007 tax return will need to file a return this year to receive an economic stimulus payment. For more information see IRS Fact Sheet: FS 2008-16 Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Security and Certain-Veterans-Benefits. IRS Fact-Sheet 2008-16

To get quick refunds, many sites also offer free electronic filing of your tax return. The IRS offers:

=>Volunteer Income Tax Assistance (VITA) offers free tax help to people whose incomes are $40,000 or less. Volunteers sponsored by various organizations receive training to prepare basic tax returns in communities across the country. VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls and other convenient locations.

=>Tax Counseling for the Elderly (TCE) provides free tax help to people aged 60 and older. Trained volunteers from non-profit organizations provide free tax counseling and basic income tax return preparation for senior citizens. Volunteers who provide tax counseling are often retired individuals associated with non-profit organizations that receive grants from the IRS.

=>AARP Tax-Aide counseling, part of the IRS-Sponsored TCE Program, AARP offers the Tax-Aide counseling program at thousands of sites nationwide during the filing season. Trained and certified AARP Tax-Aide volunteer counselors help people of low-to-middle income with special attention to those aged 60 and older. To locate the nearest AARP Tax-Aide site in your community, call 888-227-7669 (888-AARPNOW) or visit AARP's Web site at www .aarp.org.

Filing your taxes can be free and easy. Take advantage of a volunteer assistance program in your area to receive free income tax preparation assistance. Locations and hours of operation are often available through city information hotlines and local community organizations. Local volunteer tax preparation site information is also available by calling the IRS toll-free: 1- 800- 829- 1040.

Free Tax Help is available!